Shares in London based BP have surged to their highest levels in nearly two years, gaining more than 1.5 percent as the broader market declines.

The company is up on the announcement of its $7.8 billion settlement with thousands of businesses and individuals relating to the 2010 oil spill in the Gulf of Mexico that killed 11 and dumped 4.9 million barrels of crude into the waters.

While the agreement must still be approved by a federal judge, and it does not end future charges by U.S. prosecutors, it offers some view into the company's liabilities over the incident.

According to Bloomberg, BP still faces up to $17.6 billion in civil fines for the water pollution and billions more on criminal charges. The company has set aside $37 billion for the Macondo spill.

"The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast," said BP Group CEO Bob Dudley.

Most equity analysts maintained previous ratings and price targets on the firm, however British investment and private bank Berenberg Bank increased its 12 month target to 575 pence from 550 ten days ago.